The Federal Housing Finance Agency (FHFA) has issued a Request for Input on lending and servicing issues faced by mortgage borrowers with Limited English Proficiency (LEP).
“Originators and servicers cite uncertainty about how they can provide services or resources in languages other than English without taking on additional legal risk or incurring regulatory consequences, as well as concerns over the costs of providing these services,” said the FHFA in its Request for Input
. “Facilitating mortgage origination and servicing interactions in languages other than English is made more difficult by the many languages and language dialects spoken in the United States. Translation services or resources must be technically accurate as well as understandable by the borrower, and they must be provided in a way that does not create unrealistic borrower expectations or discourage borrowers. There are indications that lenders and servicers, like borrowers, may be unaware of resources or services currently available to help them communicate in languages other than English. Addressing these many needs may require investment in systems, processes, or trained personnel.”
The FHFA will be accepting input for the next 45 days.